US Jails Osun Monarch, Oba Joseph Oloyede For $4.2m COVID-19 Relief Fraud

The Apetu of Ipetumodu in Osun State, Oba Joseph Oloyede, has been sentenced to prison in the United States for his role in a multimillion-dollar COVID-19 relief fraud scheme.

Oloyede, 62, who holds both Nigerian and U.S. citizenship and lives in Medina, Ohio, was handed a 56-month prison term on August 26 by U.S. District Judge Christopher A. Boyko.

In addition to the jail time, the monarch must serve three years of supervised release after completing his sentence and repay $4.4 million in restitution.

The court also ordered him to forfeit his Medina home, which was purchased with fraudulent funds, along with nearly $96,000 seized during the investigation.

The U.S. Attorney’s Office for the Northern District of Ohio, said Oloyede and his associate, Edward Oluwasanmi, ran a scheme to exploit emergency loan programs set up during the COVID-19 pandemic to help struggling businesses.

“From about April 2020 to February 2022, Oloyede and his co-conspirator, Edward Oluwasanmi, conspired to submit fraudulent applications for loans that were made available through the U.S. Small Business Association (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act,” the statement read.

Both men admitted guilt in April to charges of wire fraud and tax fraud after investigators uncovered that they had diverted more than $4.2 million in federal relief funds.

Prosecutors revealed that Oloyede, who also worked as a tax preparer, “operated five businesses and one nonprofit, while Oluwasanmi owned an additional three business entities.

“Both defendants used their businesses to submit loan applications using false information.

“They obtained approximately $1.2 million in SBA funds for Oluwasanmi’s entities and $1.7 million for Oloyede’s entities,” the statement added.

The scheme extended beyond their own companies and the funds were then used for personal gain, prosecutors said.

Investigators said Oloyede also filed fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications on behalf of some of his tax clients.

“Oloyede submitted fraudulent PPP and EIDL applications in the names of some of his clients and their businesses.

“In exchange, Oloyede would receive 15-20% of their loans as the fee, or kickback, for obtaining the loans for them, without reporting this income to the IRS on his own tax returns.”

“Investigators learned that the defendant used funds obtained from these loans to acquire land and build a home and purchase a luxury vehicle,” the U.S. Attorney’s Office disclosed.

In all, Oloyede “caused the SBA to approve 38 fraudulent applications, amounting to $4,213,378 in disbursed loans and advances.”

His co-conspirator, Oluwasanmi, also 62, from Willoughby, Ohio, was sentenced in July to 27 months in prison.

He was ordered to pay over \$1.2 million in restitution, forfeit a commercial property, and surrender more than \$600,000 from his bank accounts.

The case was investigated by the FBI, IRS Criminal Investigations, and the Department of Transportation Office of the Inspector General, working together under the Pandemic Response Accountability Committee Fraud Task Force. Prosecutors Edward D. Brydle and James L. Morford handled the case for the Northern District of Ohio.

“This case was prosecuted by Assistant United States Attorneys Edward D. Brydle and James L. Morford for the Northern District of Ohio,” the release concluded

KanyiDaily had reported how the Osun Monday, Oba Joseph Oloyede was arrested by the FBI after being charged with conspiracy, wire fraud, and money launderingbin February.